Income and Corporation Taxes Act 1988

789 Arrangements made under old law. U.K.

M1 (1) Notwithstanding section 793(2), any arrangements made in relation to the profits tax under section 347 of the M2 Income Tax Act 1952 or any earlier enactment corresponding to that section shall, except in so far as arrangements made after the passing of the M3 Finance Act 1965 provide otherwise, have effect in relation to corporation tax and income and gains chargeable to corporation tax as they are expressed to have effect in relation to the profits tax and profits chargeable to the profits tax, with the substitution of accounting periods for chargeable accounting periods (and not as they had effect in relation to income tax).

(2) In so far as any arrangements made before 30th March 1971 provide for the exemption of any income from surtax they shall have effect, unless otherwise modified by subsequent arrangements, as if they provided for that income [F1 —

(a) to bear income tax at the basic rate or, where that income is income to which section 1A applies, at the lower rate; and

(b)] to be disregarded for the purpose of computing total income, except in so far as the computation affects the matters mentioned in section 835(5).

(3) Any reference in the Tax Acts (including this Part) to arrangements under or by virtue of section 788 includes a reference to arrangements having effect by virtue of this section.

Textual Amendments

F1 Words in s. 789(2) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 1996 (c. 8), Sch. 6 para. 21

Marginal Citations

M1 Source—1970 s.497(9), (10); 1971 sch.6 74; 1972 s.100(1)

M2 1952 c.10.

M3 1965 c. 25.